Cluster Development in Hungary: Searching for a ‘Critical Mass’ of Business via Cluster Mapping

Miklós Szanyi, Ichiro Iwasaki, Péter Csizmadia, Miklós Illésy and Csaba Makó

Chapter 5 in Local Economies and Global Competitiveness, 2010, pp 113-133 from Palgrave Macmillan

Abstract: Abstract Industry clusters (ICs) have attracted much attention in the recent past. Besides the ever-growing academic interest, ICs have become primary targets of development policy. Various documents of the European Commission (EC) have expressed strong confidence in ICs as exceptionally suitable drivers of economic growth, innovation, and competitiveness (EC, 2003, 2008a, 2008b). National governments and EC-supported policies were designed to promote the process of clustering and the establishment of cluster organizations. Another important string of literature and policy practice is foreign direct investment (FDI) attraction and the development of local linkages (for example, supplier networks) of foreign investment enterprises (FIEs). Both structures, ICs and widespread supplier networks, have common features. Most importantly, both need a sufficient number of potential collaborators. Both can be developed most successfully in regions where economic activity is vivid and enterprising and cooperation has traditions. It is therefore of special interest to learn what should and could be the relationship between the two cooperation systems, what are their common features, and what are the differences.

Keywords: Foreign Direct Investment; Supply Network; Spatial Concentration; Foreign Direct Investment Inflow; Potential Cluster (search for similar items in EconPapers)
Date: 2010
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DOI: 10.1057/9780230294967_6

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